The Nigerian Government's Compressed Natural Gas (CNG) Initiative has announced plans to roll out 5,000 CNG-powered tricycles over the next three months.
This move is part of the government's efforts to promote the adoption of cleaner energy solutions and reduce the country's reliance on fossil fuels.
The Presidential CNG Initiative, led by Programme Director and Chief Executive Michael Oluwagbemi, aims to enhance affordable and eco-friendly transportation across Nigeria and mitigate the impact of fuel subsidy removal.
To achieve this, the government has introduced several incentives, including Value Added Tax exemptions and Custom duty waivers for CNG-powered tricycles and vehicles.
The government has also mandated all Ministries, Departments, and Agencies to purchase only CNG-powered vehicles moving forward. The Nigerian Midstream and Downstream Petroleum Regulatory Authority is providing CNG at a concessionary price, offering more than a 40 per cent discount on the current price.
The new Luojia Tricycle Assembly plant in Ogun State, inaugurated recently, is expected to play a significant role in the initiative. The plant has the capacity to assemble 120 tricycles daily and over 30,000 in a year as it ramps up its capacity.
The plant is also expected to generate at least 60 direct jobs and over 6,000 indirect jobs, boosting economic growth and increasing tax revenue for the government.
The government is working with tricycle organisations to identify potential beneficiaries under a loan scheme and is developing a convenient payment plan for these individuals. Additionally, conversion kits will be made available at discounted prices to enable people to convert their existing vehicles to CNG.
The Managing Director and Chief Executive Officer of TGIS, Damilola Agboola, noted that the removal of fuel subsidy and the introduction of CNG by President Bola Ahmed Tinubu presents an opportunity for the private sector to invest in the initiative.
